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il chat 12:18 PM 38% You 2020-04-08, 12:17 PM All Media Uudy 12:17 PM Edit S SL Question 01: Kenosha Winter Services is a small

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il chat 12:18 PM 38% You 2020-04-08, 12:17 PM All Media Uudy 12:17 PM Edit S SL Question 01: Kenosha Winter Services is a small family owned snow removal business for services the company has always charged a flat fee per hundred square meters of now removal. The current tee is 52 per hundred square meters. However, there is some question about whether the company is actually making any money on jobs for some customers particularly those located on more remote properties that require considerable travel time. The owner's daughter, home from school for the Summer, has surested investigating this question using ABC. Aber some discussion, a simple system consisting of four activity cost poole seemed to be adequate. The activity cast pools and their activity Activity Cast Pool Activity Measure Activity for the Year The total cost for operating the comany for the year is $624,000 which indudes the following costs: Snow.removalec pet depon ompositions dibuted across the activities as follows: la support consists of receiving calls from potential customers at the home office scheduling jobs, biling 2. Prepare the first stage allocation of costs to the activity cost pools, 4 Marks Croute the activity rates for the activity 15 Marks c. The company recently completed a 3.500 square metre now removal job at Home Hardware-a 70-kilometre round-trip journey from Kenosha's offices Compute the cost of this using the ABC system, Marks! d the revenue from the Hometown Hardware job was 5735 3.500 square meters at 521 per hundred square meters. Prepare a report showing the margin from this job. 16 Marks] il chat 12:18 PM 38% You 2020-04-08, 12:17 PM All Media Uudy 12:17 PM Edit S SL Question 01: Kenosha Winter Services is a small family owned snow removal business for services the company has always charged a flat fee per hundred square meters of now removal. The current tee is 52 per hundred square meters. However, there is some question about whether the company is actually making any money on jobs for some customers particularly those located on more remote properties that require considerable travel time. The owner's daughter, home from school for the Summer, has surested investigating this question using ABC. Aber some discussion, a simple system consisting of four activity cost poole seemed to be adequate. The activity cast pools and their activity Activity Cast Pool Activity Measure Activity for the Year The total cost for operating the comany for the year is $624,000 which indudes the following costs: Snow.removalec pet depon ompositions dibuted across the activities as follows: la support consists of receiving calls from potential customers at the home office scheduling jobs, biling 2. Prepare the first stage allocation of costs to the activity cost pools, 4 Marks Croute the activity rates for the activity 15 Marks c. The company recently completed a 3.500 square metre now removal job at Home Hardware-a 70-kilometre round-trip journey from Kenosha's offices Compute the cost of this using the ABC system, Marks! d the revenue from the Hometown Hardware job was 5735 3.500 square meters at 521 per hundred square meters. Prepare a report showing the margin from this job. 16 Marks]

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